Spinning (IPO) is the act or practice of an investment bank offering under-priced shares of a company's initial public offerings to the senior executives of a third party company in exchange for future business with the investment bank.
[1] This conflict of interest was a relatively common way for investment banks to attract new clients in the past, but has since been prohibited.
[citation needed] Those opposed to the practice liken IPO spinning to a disguised form of corporate bribery and believe that it cheats two classes of investors:
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